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A rare bit of green space in an industrial area will turn into a "shantytown" if trees are cut down to make way for another building as planned, says a neighbouring business owner.

The 7740sq m Hewletts Road Reserve is designated by Tauranga City Council for community buildings, with several already installed around its perimeter and leased by various clubs and groups.

But plans to cut down mature Norfolk pine trees in a 200sq m section of the reserve to install another building have alarmed the owners of two neighbouring businesses.

The council sent letters to neighbours earlier this monthstating it had granted the Tauranga Model Railway Club a lease to develop a new clubroom on the reserve, following public consultation as part of a wider reserves document.

"We've never had anyone knock on our door and ask us how we think this should pan out."

Some of the work from a Tauranga Model Railway Club display in 2016. Photo / File

Mark Smith, manager of spaces and places at the council, said a representative of the model railway club had approached adjoining clubs and businesses a year ago to discuss using the site for their clubroom before going to the council.

The proposal was in the draft Tauranga Reserves Management Plan that went out for public consultation between August and October last year. No opposition submissions were received.

Smith said trees would need to be cut down but would be replaced with "appropriate trees and shrubs".

Containers were not permitted without council permission.

The council was working with the club to find a spot for the new building. The club had not yet applied for resource consent.

Hewletts Rd was the best place for the club because the reserve was set aside for community buildings, the club's purpose met the purpose of the reserve and the club had "synergies" with other clubs on the reserve, Smith said.

A spokesman for the model railway club declined to comment.

The other clubs that lease space in the reserve are the BOP Coastal Cruisers, Lions Club of Mount Maunganui, Oceanside Street Rodders, Tauranga Classic Motorcycle Club, Bay Rodders and Tauranga Woodcrafters Club.

The Bay of Plenty Times was able to contact representatives of all but the cruisers and Oceanside clubs.

None were particularly concerned about plans for another building, provided the central green space used by all for events was retained.

Some said they wanted more information about exactly where the building would go, and to discuss the proposal with their members before taking a firm stance.

Others had concerns about the extra demand on parking.

Ross Chaytor, president of Bay Rodders, said there were already six clubs vying for parks, with surrounding businesses also using the reserve's car park for overflow.

His club had about 120 members and could have up to 60 cars at their events, he said.